Blackberry Mobile Market Challenges and Strategy

Blackberry Mobile Challenges

Blackberry Mobile has reported a over 500 million US dollars net loss in the last few months. The company almost triple the loss it made in the previous quarter in 2015. Blackberry Mobile shares gained in early trading as it said losses for 2015 would be lower than expected. The big fall was due to restructuring costs and a write-down of some assets. John Chen, the CEO of Blackberry Mobile, pointed out that greater productivity and strong growth in software and services would trim its losses. Blackberry Mobile is moving away from smartphone sales and towards the device software used by enterprises and government institutions. Actually, compared to many other budget free 4G smart phone brands, which most of them are from China, Blackberry Mobile has no advantages in technological features. The company said sales of its handsets, which had an average selling price of over $250, were below projections in the quarter.

Blackberry Mobile

                        CEO John Chen is introducing a new BlackBerry mode

 

Blackberry Mobile Decrease in Sales

 

The company sales fell by more than $300 million in the three months to the end of February 2016. The CEO John Chen blamed delays in negotiations with mobile networks about its Android-based handset. Blackberry Mobile announced it expected its software and services revenue to grow faster than the overall market. John Chen argued cost-cutting meant Blackberry Mobile now needed to sell only 2.98 million devices a year, and it is down from a previous estimate of 4.1 million. Blackberry Mobile has found its market for expensive handsets heavily eroded in recent years by quite strong competitors including Apple’s iPhone and the Samsung Galaxy range.

Blackberry Mobile

Blackberry Mobile Discussions

 

Some technology researchers and reporters argued that the softness at the high end of the smartphone market is certainly a headwind. However, the most important issue that people face and that companies need to address is the distribution. Furthermore, another view believed that the decrease in hardware revenue is certainly a negative. Researchers and technology enterprise would like to see more details into how close Blackberry Mobile is to achieving its target of profitability.

Blackberry Mobile

 

 

 

Add a Comment

Your email address will not be published. Required fields are marked *

Sign up for our email newsletters

close